Increases to CEO Compensation Might Be Put On Hold For Now at TCI Express Limited (NSE:TCIEXP)

CEO Chander Agarwal has done a decent job of delivering relatively good performance at TCI Express Limited (NSE:TCIEXP) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 28 July 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for TCI Express

How Does Total Compensation For Chander Agarwal Compare With Other Companies In The Industry?

At the time of writing, our data shows that TCI Express Limited has a market capitalization of ₹63b, and reported total annual CEO compensation of ₹67m for the year to March 2021. We note that's a decrease of 13% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at ₹30m.

In comparison with other companies in the industry with market capitalizations ranging from ₹30b to ₹119b, the reported median CEO total compensation was ₹48m. Hence, we can conclude that Chander Agarwal is remunerated higher than the industry median. Furthermore, Chander Agarwal directly owns ₹2.1b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	₹30m	₹42m	45%
Other	₹37m	₹35m	55%
Total Compensation	₹67m	₹77m	100%

On an industry level, around 97% of total compensation represents salary and 3% is other remuneration. TCI Express pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at TCI Express Limited's Growth Numbers

TCI Express Limited's earnings per share (EPS) grew 20% per year over the last three years. It saw its revenue drop 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has TCI Express Limited Been A Good Investment?

We think that the total shareholder return of 175%, over three years, would leave most TCI Express Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for TCI Express that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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